Time Warner Inc. (TWX) Downgraded to “Hold” at Zacks Investment Research
Time Warner Inc. (NYSE:TWX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “Time Warner’s initiatives such as foraying into new markets and digital endeavors bode well. This is quite evident from positive earnings surprise streak in the last 18 quarters, including earnings beat of 11.2% in second-quarter 2016. The company's investments in video content and technology continued to show results. Share repurchase activity and lower effective tax rate also provided cushion to the bottom line. Better-than-expected results prompted management to raise its full year earnings projection. Additionally, we believe that the company's investments in programming, production and marketing, coupled with its focus on operating and capital efficiencies augur well. However, decline in overall advertising spending and currency headwinds may adversely impact the company’s performance. Moreover, management expects to face tough comparisons in video games and TV licensing at Warner Bros. during the third quarter.”
A number of other analysts have also recently commented on TWX. FBR & Co cut shares of Time Warner from an “outperform” rating to a “market perform” rating and set a $81.00 price target on the stock. in a research report on Tuesday, July 26th. Albert Fried & Company reiterated an “outperform” rating and set a $90.00 price objective on shares of Time Warner in a report on Thursday, September 29th. Brean Capital reiterated a “buy” rating on shares of Time Warner in a report on Tuesday, July 26th. RBC Capital Markets reiterated an “outperform” rating and set a $95.00 price objective (up previously from $92.00) on shares of Time Warner in a report on Thursday, August 4th. Finally, Royal Bank Of Canada upped their price objective on shares of Time Warner from $92.00 to $95.00 and gave the company an “outperform” rating in a report on Thursday, August 4th. Eleven analysts have rated the stock with a hold rating, twenty-three have given a buy rating and one has given a strong buy rating to the stock. The company presently has a consensus rating of “Buy” and a consensus price target of $86.11.
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Time Warner (NYSE:TWX) traded up 0.65% during trading on Tuesday, reaching $79.35. The company had a trading volume of 553,804 shares. The company has a market capitalization of $61.72 billion, a price-to-earnings ratio of 15.79 and a beta of 1.21. The company has a 50-day moving average price of $78.07 and a 200 day moving average price of $76.30. Time Warner has a one year low of $55.53 and a one year high of $81.33.
Time Warner (NYSE:TWX) last issued its quarterly earnings results on Wednesday, August 3rd. The media conglomerate reported $1.29 EPS for the quarter, beating the Zacks’ consensus estimate of $1.16 by $0.13. The business had revenue of $7 billion for the quarter, compared to analysts’ expectations of $7.12 billion. Time Warner had a net margin of 14.54% and a return on equity of 17.33%. The business’s quarterly revenue was down 5.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.25 earnings per share. Analysts expect that Time Warner will post $5.42 earnings per share for the current year.
In related news, EVP Paul T. Cappuccio sold 56,595 shares of Time Warner stock in a transaction on Wednesday, September 7th. The shares were sold at an average price of $78.24, for a total value of $4,427,992.80. Following the transaction, the executive vice president now owns 157,877 shares in the company, valued at approximately $12,352,296.48. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Karen Magee sold 14,240 shares of Time Warner stock in a transaction on Thursday, August 25th. The stock was sold at an average price of $79.97, for a total transaction of $1,138,772.80. Following the completion of the transaction, the insider now owns 7,461 shares in the company, valued at approximately $596,656.17. The disclosure for this sale can be found here. 0.16% of the stock is currently owned by corporate insiders.
A number of institutional investors have recently modified their holdings of the company. Private Wealth Partners LLC boosted its position in shares of Time Warner by 3.3% in the second quarter. Private Wealth Partners LLC now owns 179,300 shares of the media conglomerate’s stock worth $13,186,000 after buying an additional 5,760 shares during the last quarter. Goldentree Asset Management LP boosted its position in shares of Time Warner by 74.3% in the first quarter. Goldentree Asset Management LP now owns 501,807 shares of the media conglomerate’s stock worth $36,406,000 after buying an additional 213,850 shares during the last quarter. Shell Asset Management Co. boosted its position in shares of Time Warner by 11.6% in the second quarter. Shell Asset Management Co. now owns 149,788 shares of the media conglomerate’s stock worth $11,015,000 after buying an additional 15,539 shares during the last quarter. Adage Capital Partners GP L.L.C. boosted its position in shares of Time Warner by 50.2% in the first quarter. Adage Capital Partners GP L.L.C. now owns 1,807,086 shares of the media conglomerate’s stock worth $131,104,000 after buying an additional 603,700 shares during the last quarter. Finally, AMP Capital Investors Ltd boosted its position in shares of Time Warner by 5.0% in the first quarter. AMP Capital Investors Ltd now owns 516,087 shares of the media conglomerate’s stock worth $37,240,000 after buying an additional 24,539 shares during the last quarter. Institutional investors own 80.68% of the company’s stock.
About Time Warner
Time Warner Inc is a media and entertainment company. The Company operates through three segments: Turner, which consists of cable networks and digital media properties; Home Box Office, which consists of domestic premium pay television and streaming services, and international premium pay, basic tier television services and streaming services, and Warner Bros., which consists of television, feature film, home video and videogame production and distribution.
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